Cyclops, a platform providing stablecoin and cryptocurrency tools for payment service providers, announced on March 4, 2026, that it raised $8 million in a strategic funding round. Castle Island Ventures led the investment, with participation from F-Prime and Shift4 Payments.
Company Background
Cyclops was founded by Pat Duffy, Alex Wilson, and David Johnson, who previously built The Giving Block, a cryptocurrency donations platform acquired by Shift4 Payments. The trio then developed stablecoin and crypto products for Shift4 over three years, leading to the creation of Cyclops due to challenges with existing providers.
The platform supports over 200,000 merchants across 130 countries, processing more than $2 billion in volume with 20+ assets. It offers receive payments, settlement, conversion, payouts, and custom API solutions tailored for payments firms.
Investor Details
Castle Island Ventures, a firm focused on cryptocurrency infrastructure, led the round. General Partner Sean Judge highlighted the founders’ experience building stablecoin products within a large payments firm.
F-Prime Capital invests in fintech and crypto sectors. Shift4 Payments, a payments processor, participated strategically, given the founders’ prior work there; Chief Strategy Officer Luke Thomas noted the difficulties payments companies face in offering crypto without becoming crypto specialists.
Stated Use of Funds
Cyclops plans to expand its platform for payments companies, emphasizing onboarding, compliance, and technical features for stablecoin settlement, crypto payments, and payouts. The company aims to enable these without requiring clients to maintain blockchain infrastructure.
Market Context
Stablecoin infrastructure has drawn investor interest amid regulatory clarity from frameworks like Europe’s MiCA. Payments firms seek stablecoins for faster cross-border transfers and margin improvements.
Recent comparable raises include ARQ’s $70 million for stablecoin services, though in a different segment. web3 fundraising updates show crypto infrastructure funding continuing into 2026 despite broader market volatility.
The sector benefits from stablecoins’ growth in payments, where PSPs leverage distribution for adoption. Cyclops enters as payments companies respond to merchant demand for digital assets.
